Refinancing your home loan

According to data released by the Australian Bureau of Statistics in August 2025, the total number of loans refinanced between lenders rose to 65,205 in the June quarter, 24.1 per cent higher than this time last year. So why do people switch? 

The answer is usually pretty straight forward: to try and save money. Refinancing your home loan could help you lock in a lower interest rate, get more features (like an offset account or redraw facility), change the length of your term, or streamline finances.

Before switching, make sure you understand your current loan. Review your interest rate, fees and features, and know what penalties may apply if you switch before the end of a fixed-term period. You may also need to consider what fees will apply to your new loan, like application fees or valuation costs. Assessing these factors can help you determine whether switching to another lender will leave you better off.

It’s also worth talking to your current lender before making a move. You may be able to negotiate a lower interest rate with them if they’re aware of your intentions to switch, as they may be keen to keep your business.

Ideally, you want to scout out what other lenders are offering. Check their interest rates, application fees and features to secure the best option for your circumstances. A mortgage broker or comparison website like Finder, Canstar or Compare the Market can help you do this.

You can also use an online calculator — such as Moneysmart.gov.au’s mortgage switching calculator — to help you work out whether you can save money by switching and how long it might take to recover the cost of switching.

Once you’ve found your preferred lender, it’s time to take the plunge and apply. The process can vary depending on the lender, but if you’re applying for an home loan from NRMA Insurance, the application process looks like this:

1. Complete your application 
   To apply for a home loan online, you'll need to provide a few forms of formal identification, like your driver licence and Medicare card, as well as documents that will help us verify your financial situation. 
   

2. Your application will be assessed 
   We'll review your application and check that everything is in order. This might involve getting your property valued, verifying your personal details, and conducting a credit check. If more information is needed for a decision, a credit assessor will be in touch. 
   

3. All going well, you'll get approved 
   Assuming you’ve met all the required eligibility criteria and supplied all relevant information, formal approval will be granted (yay!). You’ll receive new loan documents to sign, and settlement will be arranged.

That was a lot of information, so let’s sum it all up with a checklist:

• Work out your reason for refinancing and be clear on what you want to achieve
• Assess your current situation
• Negotiate with your current lender
• Compare all your options
• Apply to your favoured lender.

Good luck with your refinancing journey, friends. May your new loan be brimming with benefits!